Venezuela’s Inflation Hits Year-to-Date High In August

The country saw a 13.6% hike in prices during the month, bringing year-on-year inflation to 422%

Photo: Carlos Becerra/Bloomberg
September 06, 2023 | 10:24 AM

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Caracas — Venezuela has seen prices to consumers continue to rise in recent months, with the highest monthly inflation so far this year in August, of 13.6%, according to the Venezuelan Financial Observatory (VFO), which monitors the country’s economy.

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Communications services saw the sharpest rise in prices, by up to 26.7% for Internet and mobile telephony, while food prices increased by 8%, which was double the increase recorded in July.

In the case of transportation, according to VFO figures, the increase was 9.9%, education 9.4% and housing rental 10%.

Year-on-year inflation hit 422%, while so far this year it has hit 144.6%.

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The VFO analysis, which is compiled by economists and former opposition deputies, states that there was an overreaction to the depreciation of the local currency, with an increase in the exchange rate against the dollar of 8.3% in the parallel market and 10.5% in the official market.

The VFO also considers that this behavior could reflect an inflationary trajectory that will be difficult to stop until the country’s economy is able to rely on an anchor.

Although the Central Bank of Venezuela has not published the consumer price variation index for last month, in July it recorded an inflation rate of 6.2%, equal to that of June but higher than that of May.

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